Voluntary repossession

Spikeybird

Hello all

Yet another query from me...basically after 2 missed payments on the mortgage the lender is asking us to pay up. We've explained that we're both going bankrupt and that this is planned for end Sept beginning of Oct as that's when we'll have the money and also we'll be in rented house by then.
They have said they'll send vol repossession forms and pass the info to local estate agent to sell the property...is this a good idea...is this ok by the OR and courts...really worried that this might not be "correct"...don't know why just want to be sure!


Thanks guys
Spikeybird

DEBTMONKEY1A

Hi-DON'T WORRY!

If you list the property on your BR forms as a secured debt, even if you voluntarily give up the property AFTER you are declared BR the debt is INCLUDED in the BR & they can not come after you at any time for any 'shortfall'.

I was in the same boat. Could not afford to put my house on market so after discussing this with the lender have given back the keys (did this after BR).

One thing to bear in mind-if your Mortgage lender is a member of the Council of Mortgage Lenders (CML) they may (& it's not 100%-each lender has their own rules) put you on the CML reposession register. This is separate to a credit file.... & means that if you are on this register either for having your home repo'd or voluntarily surrendering your name will stay on for 6 years & getting a future mortgage will be harder (not impossible but bigger deposits & slightly higher interest rates) & more costly.

I kept in constant touch with my lender & as such they decided NOT to put me on this register. Many lenders have what is called 'an assisted sale' where they put the place on the market (& pay costs) whilst you are still there & you show people round, etc....in this instance they would 100% NOT put you on the register. If they do not have this scheme it's worth calling them to see if they would consider NOT putting you on the CML repo register if you play fair by them, ie leave house in good order/bills paid up-empty, etc...it worked for me!

Being on the CML repo register is not the biggest problem in the world but carefull planning/negotiation can avoid this.

SO...you definately DON'T have to give your keys up prior to BR. The debt charities, CCCS, etc will explain/confirm this if you are still unsure.

Charger_2

Hi

are you saying that if you have say more than one property ( eg say 8 properties ) and you know that you cant make the payments on all of them, and BR is the only option, Then when say lender "A" makes you BR you can then get all the other props out of the way by the giving details of them all to the OR which then a) forces their repo/sale etc and b) they cant come back at you in the future for the shortfall debt on any of them?

Richard_S

Charger wrote: »

Hi

are you saying that if you have say more than one property ( eg say 8 properties ) and you know that you cant make the payments on all of them, and BR is the only option, Then when say lender "A" makes you BR you can then get all the other props out of the way by the giving details of them all to the OR which then a) forces their repo/sale etc and b) they cant come back at you in the future for the shortfall debt on any of them?

Hi Charger,

A debt is a debt; you can go bust for £750 or £750million. Assets and liablities however big or small are treated exactly the same.

Once declared bankrupt all assets and liablilities rest with the O.R; the bankrupt is no longer responsible for their financial affairs.

Come discharge date you walk away; not entirely a clean slate, maybe more of a tarnised one.:D